Fall 2012 - 62445 - PA393L - Advanced Policy Economics

Political Economy of Global Energy

Course Overview

Students are required to take an additional three-hour course in policy economics, selected from among a set of courses focusing on the application of economic theory and techniques to a specific area of public policy. Course options include macroeconomics, public finance, regulation, international trade and finance, natural resources and environmental policy, health policy, transportation policy, human resource development, urban and regional economic development, international development, education policy, social policy, and labor economics. Not all options are offered every year. This course is usually taken in the second year.

Section Description

This course will introduce students to the major theoretical frameworks commonly used to analyze the design and implementation of public policies related to energy issues, and the response of the energy industry to those policies. The course will focus on the application of these frameworks to specific cases studies. Theoretical frameworks discussed will include public choice; networks, monopoly and regulation; management of global commons; game theory; organizational behavior; technology and society; and economy and development. Among other topics, application case studies will include: geopolitics of oil and gas; ethanol subsidies; renewables portfolio standards; carbon capture and storage (CCS); international coal trade; international climate change negotiations; purchase of overseas energy resources; electricity regulation in developing countries; and innovation systems in energy.

Roughly, one session will cover one case study. Each session will begin with a highlight of the theoretical frameworks relevant to the case study. In a discussion-oriented approach, the class will then analyze the outcomes in the case study through the lens of those frameworks. Student participation in the discussions is required.

Each session will have assigned reading (about 3-4 research papers and/or reports). Individually or in groups of two, students will be responsible for developing a 20-30 minutes presentation on one of the case studies. Each student will also be required to write a 20-25 page research paper that applies the frameworks discussed in the course to a topic of their choice.

This course is cross-listed with EER 396 #26875. LBJ is the home department.